The government is likely to reduce the proposed taxes on import of mobile handsets to keep the products within purchase capacity of common people, finance ministry officials said. They said that finance minister Abul Maal Abdul Muhith might withdraw advance income tax, and reduce customs duties and value-added tax on mobile handsets at import stage. The decision may come in line with the demand of mobile set importers and to encourage use of information and telecommunication devices to build up digital Bangladesh, they said.
Reduction of taxes may also be applicable for wireless set import.
In the proposed Finance Bill-2014, Muhith proposed to impose 5 per cent AIT and 15 per cent VAT on mobile set import.
Currently, mobile set importers have to pay a total of 10 per cent customs duty on import of the item.
According to the proposed amendment of the finance bill, customs duty may be reduced to 5 per cent along with withdrawal of AIT.
Mobile set importers have also demanded for withdrawal of 15 per cent VAT on the product in import.
Officials said that some local companies were assembling quality mobile sets in the country and they have to pay 15 per cent VAT at assembling stage.
If VAT on import of the item is withdrawn, it will create uneven competition for local assembling companies, they said.
The government high-ups are also considering either to withdraw or reduce the rate of VAT. But the decision may be same for the both import and assembling stage.
Finance minister may also announce reduction of duties on import of CR coil, blade, scrap sheet, fan motor and some other products used in local industry while passing budget documents in the parliament on June 28 or 29.
-With New Age input
